[Federal Register Volume 84, Number 101 (Friday, May 24, 2019)]
[Notices]
[Pages 24085-24087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10935]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-870]


Certain Oil Country Tubular Goods From the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review; 2016-2017

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that SeAH 
Steel Corporation (SeAH) and NEXTEEL Co., Ltd. (NEXTEEL), producers/
exporters of certain oil country tubular goods (OCTG) from the Republic 
of Korea (Korea), sold subject merchandise in the United States at 
prices below normal value (NV) during the period of review (POR) 
September 1, 2016, through August 31, 2017.

DATES: Applicable May 24, 2019.

FOR FURTHER INFORMATION CONTACT: Davina Friedmann or Julie Geiger, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0698 or (202) 482-2057, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 11, 2018, Commerce published the Preliminary Results of 
this administrative review.\1\ We invited interested parties to comment 
on the Preliminary Results. Between February 12 and February 19, 2019, 
Commerce received timely filed briefs and rebuttal briefs from various 
interested parties.\2\
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    \1\ See Certain Oil Country Tubular Goods from the Republic of 
Korea: Preliminary Results of Antidumping Duty Administrative 
Review; 2016-2017, 83 FR 51442 (October 11, 2019) (Preliminary 
Results) and accompanying Decision Memorandum (Preliminary Decision 
Memorandum).
    \2\ See, respectively, Letter from Maverick, ``Certain Oil 
Country Tubular Goods from the Republic of Korea: Case Brief of 
Maverick Tube Corporation and Tenaris Bay City, Inc.,'' dated 
February 12, 2019; Letter from U.S. Steel, ``Oil Country Tubular 
Goods from the Republic of Korea: Case Brief of United States Steel 
Corporation,'' dated February 12, 2019; Letter from SeAH, 
``Administrative Review of the Antidumping Order on Oil Country 
Tubular Goods from Korea--Case Brief of SeAH Steel Corporation,'' 
dated February 12, 2019; Letter from NEXTEEL, ``Oil Country Tubular 
Goods from the Republic of Korea: NEXTEEL's Case Brief,'' dated 
February 12, 2019; and Letter from AJU Besteel, ``Certain Oil 
Country Tubular Goods from the Republic of Korea--Case Brief,'' 
dated February 12, 2019; Letter from ILJIN, ``Oil Country Tubular 
Goods from the Republic of Korea: Case Brief,'' dated February 12, 
2019; Letter from Husteel, ``Oil Country Tubular Goods from the 
Republic of Korea, 9/1/2016-8/31/2016 Administrative Review, Case 
No. A-580-870: Case Brief,'' dated February 12, 2019; and Letter 
from Hyundai Steel, ``Oil Country Tubular Goods from the Republic of 
Korea: Hyundai Steel's Case Brief,'' dated February 12, 2019; see 
also respectively, Letter from Maverick, ``Certain Oil Country 
Tubular Goods from the Republic of Korea: Rebuttal Brief of Maverick 
Tube Corporation and Tenaris Bay City, Inc.,'' dated February 19, 
2019; Letter from U.S. Steel, ``Oil Country Tubular Goods from the 
Republic of Korea: Rebuttal Brief of United States Steel 
Corporation,'' dated February 19, 2019; Letter from SeAH, 
``Administrative Review of the Antidumping Order on Oil Country 
Tubular Goods from Korea--Rebuttal Brief of SeAH Steel 
Corporation,'' dated February 19, 2019; Letter from NEXTEEL, ``Oil 
Country Tubular Goods from the Republic of Korea: NEXTEEL's Rebuttal 
Brief,'' dated February 19, 2019.
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    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019.\3\ If the new 
deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will become the next business day. On March 11, 
2019, we extended the deadline for the final results.\4\ The revised 
deadline for the final results is now May 17, 2019.
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    \3\ See Memorandum to the Record from Gary Taverman, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive duties of the Assistant 
Secretary for Enforcement and Compliance, ``Deadlines Affected by 
the Partial Shutdown of the Federal Government,'' dated January 28, 
2019. All deadlines in this segment of the proceeding have been 
extended by 40 days.
    \4\ See Memorandum, ``Certain Oil Country Tubular Goods from the 
Republic of Korea: Extension of Time Limit for Final Results of the 
2016/17 Antidumping Duty Administrative Review,'' dated March 11, 
2019.
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    These final results cover 33 companies.\5\ Based on an analysis of 
the comments received, we have made changes to the weighted-average 
dumping margins determined for the respondents. The weighted-average 
dumping margins are listed in the ``Final Results of Review'' section, 
below. Commerce conducted this review in accordance with section 751(a) 
of the Tariff Act of 1930, as amended (the Act).
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    \5\ The 33 companies consist of two mandatory respondents, three 
companies for which we made a final determination of no shipments, 
and 28 companies not individually examined.
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Scope of the Order 6
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    \6\ See Certain Oil Country Tubular Goods from India, the 
Republic of Korea, Taiwan, the Republic of Turkey, and the Socialist 
Republic of Vietnam: Antidumping Duty Orders; and Certain Oil 
Country Tubular Goods from the Socialist Republic of Vietnam: 
Amended Final Determination of Sales at Less Than Fair Value, 79 FR 
53691 (September 10, 2014) (Order).
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    The merchandise covered by the Order is certain OCTG, which are 
hollow steel products of circular cross-section, including oil well 
casing and tubing, of iron (other than cast iron) or

[[Page 24086]]

steel (both carbon and alloy), whether seamless or welded, regardless 
of end finish (e.g., whether or not plain end, threaded, or threaded 
and coupled) whether or not conforming to American Petroleum Institute 
(API) or non-API specifications, whether finished (including limited 
service OCTG products) or unfinished (including green tubes and limited 
service OCTG products), whether or not thread protectors are attached. 
The scope of the Order also covers OCTG coupling stock. For a complete 
description of the scope of the Order, see the Issues and Decision 
Memorandum.\7\
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    \7\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the 2015-2016-2017 Administrative Review of the 
Antidumping Duty Order on Certain Oil Country Tubular Goods from the 
Republic of Korea,'' dated concurrently with this notice (Issues and 
Decision Memorandum).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs filed by parties 
in this review are addressed in the Issues and Decision Memorandum, 
which is hereby adopted with this notice. The issues are identified in 
Appendix I to this notice. The Issues and Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov and is available to all parties in the Central 
Records Unit, Room B8024 of the main Commerce building. In addition, a 
complete version of the Issues and Decision Memorandum can be accessed 
directly on the internet at http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision Memorandum and the 
electronic version of the Issues and Decision Memorandum are identical 
in content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
SeAH and NEXTEEL. For a discussion of these changes, see the ``Margin 
Calculations'' section of the Issues and Decision Memorandum.

Final Determination of No Shipments

    In the Preliminary Results, Commerce preliminarily determined that 
Samsung, Samsung C&T Corporation (Samsung C&T), and SeAH Besteel 
Corporation (SeAH Besteel) had no shipments during the POR.\8\ 
Following publication of the Preliminary Results, we received no 
comments from interested parties regarding these companies. As a 
result, and because the record contains no evidence to the contrary, we 
continue to find that Samsung, Samsung C&T, and SeAH Besteel made no 
shipments during the POR. Accordingly, consistent with Commerce's 
practice, we will instruct U.S. Customs and Border Protection (CBP) to 
liquidate any existing entries of merchandise produced by these three 
companies, but exported by other parties, at the rate for the 
intermediate reseller, if available, or at the all-others rate.\9\
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    \8\ See Preliminary Results, 83 FR at 51442.
    \9\ See, e.g., Magnesium Metal from the Russian Federation: 
Preliminary Results of Antidumping Duty Administrative Review, 75 FR 
26922, 26923 (May 13, 2010), unchanged in Magnesium Metal from the 
Russian Federation: Final Results of Antidumping Duty Administrative 
Review, 75 FR 56989 (September 17, 2010).
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Rate for Non-Examined Companies

    The statute and Commerce's regulations do not address the 
establishment of a rate to be applied to companies not selected for 
examination when Commerce limits its examination in an administrative 
review pursuant to section 777A(c)(2) of the Act. Generally, Commerce 
looks to section 735(c)(5) of the Act, which provides instructions for 
calculating the all-others rate in a market economy investigation, for 
guidance when calculating the rate for companies which were not 
selected for individual review in an administrative review. Under 
section 735(c)(5)(A) of the Act, the all-others rate is normally ``an 
amount equal to the weighted average of the estimated weighted average 
dumping margins established for exporters and producers individually 
investigated, excluding any zero or de minimis margins, and any margins 
determined entirely {on the basis of facts available{time} .''
    For these final results, we calculated a weighted-average dumping 
margin that is not zero, de minimis, or determined entirely on the 
basis of facts available for SeAH and NEXTEEL. Accordingly, Commerce 
has assigned to the companies not individually examined (see Appendix 
II for a full list of these companies) a margin of 24.49 percent, which 
is the weighted average of NEXTEEL's and SeAH's calculated weighted-
average dumping margins for these final results.

Final Results of Review

    Commerce determines that the following weighted-average dumping 
margins exist for the period September 1, 2016 through August 31, 2017:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                  Exporter or producer                        dumping
                                                              margins
                                                             (percent)
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NEXTEEL Co., Ltd........................................           32.24
SeAH Steel Corporation..................................           16.73
Non-examined companies \10\.............................           24.49
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Disclosure

    Commerce intends to disclose the calculations performed for these 
final results of review within five days of the date of publication of 
this notice in the Federal Register, in accordance with 19 CFR 
351.224(b).
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    \10\ See Appendix II for a full list of these companies.
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Assessment

    Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.212(b), 
Commerce shall determine, and CBP shall assess, antidumping duties on 
all appropriate entries of subject merchandise in accordance with the 
final results of this review. Commerce intends to issue assessment 
instructions to CBP 15 days after the date of publication of the final 
results of this administrative review in the Federal Register.
    Where the respondent reported reliable entered values, we 
calculated importer- (or customer-) specific ad valorem rates by 
aggregating the dumping margins calculated for all U.S. sales to each 
importer (or customer) and dividing this amount by the total entered 
value of the sales to each importer (or customer).\11\ Where Commerce 
calculated a weighted-average dumping margin by dividing the total 
amount of dumping for reviewed sales to that party by the total sales 
quantity associated with those transactions, Commerce will direct CBP 
to assess importer- (or customer-) specific assessment rates based on 
the resulting per-unit rates.\12\ Where an importer- (or customer-) 
specific ad valorem or per-unit rate is greater than de minimis (i.e., 
0.50 percent), Commerce will instruct CBP to collect the appropriate 
duties at the time of liquidation.\13\ Where an importer- (or customer-
) specific ad valorem or per-unit rate is zero or de minimis, Commerce 
will instruct CBP to liquidate appropriate entries without regard to 
antidumping duties.\14\
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    \11\ See 19 CFR 351.212(b)(1).
    \12\ Id.
    \13\ Id.
    \14\ See 19 CFR 351.106(c)(2).
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    For the companies which were not selected for individual review, we 
will assign an assessment rate based on the methodology described in 
the ``Rates for

[[Page 24087]]

Non-Examined Companies'' section, above.
    Consistent with Commerce's assessment practice, for entries of 
subject merchandise during the POR produced by SeAH, NEXTEEL, or the 
non-examined companies for which the producer did not know that its 
merchandise was destined for the United States, we will instruct CBP to 
liquidate unreviewed entries at the all-others rate if there is no rate 
for the intermediate company(ies) involved in the transaction.\15\
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    \15\ For a full discussion of this practice, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 
68 FR 23954 (May 6, 2003).
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    As noted in the ``Final Determination of No Shipments'' section, 
above, Commerce will instruct CBP to liquidate any existing entries of 
merchandise produced by but exported by other parties, at the rate for 
the intermediate reseller, if available, or at the all-others rate.

Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after the publication date of the final results 
of this administrative review, as provided for by section 751(a)(2)(C) 
of the Act: (1) The cash deposit rates for the companies listed in 
these final results will be equal to the weighted-average dumping 
margins established in the final results of this review; (2) for 
merchandise exported by producers or exporters not covered in this 
review but covered in a prior segment of this proceeding, the cash 
deposit rate will continue to be the company-specific rate published 
for the most recently completed segment in which the company was 
reviewed; (3) if the exporter is not a firm covered in this review or 
the original less-than-fair-value (LTFV) investigation, but the 
producer is, the cash deposit rate will be the rate established for the 
most recently completed segment of this proceeding for the producer of 
the subject merchandise; and (4) the cash deposit rate for all other 
producers or exporters will continue to be 5.24 percent,\16\ the all-
others rate established in the LTFV investigation. These cash deposit 
requirements, when imposed, shall remain in effect until further 
notice.
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    \16\ See Certain Oil Country Tubular Goods from the Republic of 
Korea: Notice of Court Decision Not in Harmony with Final 
Determination, 81 FR 59603 (August 30, 2016).
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Notification to Importers

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this POR. Failure to comply with this 
requirement could result in Commerce's presumption that reimbursement 
of antidumping duties occurred and the subsequent assessment of double 
antidumping duties.

Notification to Interested Parties Regarding Administrative Protective 
Order

    This notice also serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3), which continues to govern 
business proprietary information in this segment of the proceeding. 
Timely written notification of the return or destruction of APO 
materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and the terms of an 
APO is a sanctionable violation.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213(h).

    Dated: May 17, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Margin Calculations
V. Rate for Non-Examined Companies
VI. Discussion of the Issues

General Issues

Comment 1: Particular Market Situation
Comment 2: Calculation of Constructed Value Profit
Comment 3: Differential Pricing

SeAH-Specific Issues

Comment 4: Freight Revenue Cap
Comment 5: Interest Income Offset
Comment 6: Calculation of General and Administrative Expenses 
Incurred by SeAH's U.S. Affiliate
Comment 7: Treatment of Cost Variances for a Single Production Order 
Produced During POR and Non-POR Periods
Comment 8: Inventory Valuation Loss
Comment 9: Penalties Expense

NEXTEEL-Specific Issues

Comment 10: NEXTEEL-POSCO Affiliation
Comment 11: Resales of Subject Merchandise
Comment 12: Non-Prime Products
Comment 13: Warranty Expense Calculation
Comment 14: Reported Grade
Comment 15: Suspended Production Losses
Comment 16: Coil Scrap Offset
Comment 17: Pipe Scrap Offset
VIII. Recommendation

Appendix II--List of Companies Not Individually Examined

AJU Besteel Co., Ltd.
BDP International
Daewoo International Corporation
Daewoo America
Dong-A Steel Co. Ltd.
Dong Yang Steel Pipe
Dongbu Incheon Steel
DSEC
Erndtebruecker Eisenwerk and Company
Hansol Metal
Husteel Co., Ltd.
HYSCO
Hyundai RB
Hyundai Steel Co., Ltd.
Hyundai Steel Company \17\
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    \17\ On September 21, 2016, Commerce published the final results 
of a changed circumstances review with respect to OCTG from Korea, 
finding that Hyundai Steel Corporation is the successor-in-interest 
to Hyundai HYSCO for purposes of determining antidumping duty cash 
deposits and liabilities. See Notice of Final Results of Antidumping 
Duty Changed Circumstances Review: Oil Country Tubular Goods from 
the Republic of Korea, 81 FR 64873 (September 21, 2016). Hyundai 
Steel Corporation is also known as Hyundai Steel Company and Hyundai 
Steel Co. Ltd.
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ILJIN Steel Corporation
Jim And Freight Co., Ltd.
Kia Steel Co. Ltd.
KSP Steel Company
Kukje Steel
Kurvers
POSCO Daewoo Corporation
POSCO Daewoo America
Steel Canada
Sumitomo Corporation
TGS Pipe
Yonghyun Base Materials
ZEECO Asia

[FR Doc. 2019-10935 Filed 5-23-19; 8:45 am]
 BILLING CODE 3510-DS-P